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Registered User
Joined: 11/14/2004
Posts: 33
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I'd love to be able to scan for stocks that are topping and are about to turn lower. These would have been trending up for "x" number of days and two days ago experienced a larger than average price range body in the same up direction, but yesterday had a larger than average price range body in the opposite direction. Higher volume for the last two days would be great, but maybe not necessary
Obviously, I'd want to be able to scan in the opposite direction as well to find stocks that may be bottoming using the reverse criteria.
I'm willing to guess that you guys have already made such a scan, but I can't find it, or see how to modify one that is already close to what I want.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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How do you wish to define "trending up"? A positive Linear Regression Slope? If so, we'd need to know "x" to create the formula (we'd probably need to know "x" to create the formula with other definitions as well).
Over what Period do you wish to define the Average Body (and I'm assuming this excludes the tails)?
Is the higher Volume versus an Average (if so, over what Period) or versus the previous Bar?
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 11/14/2004
Posts: 33
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OK, lets just say that "trending up" means either a positive linear regression slope or a closing price two days ago that is higher than the closing price six trading days before that two day ago candle. Once I see how this is done, I'd like to copy it for 10 days, 15 days, etc. The higher volume would be over the average of the number of days of the rising price.
"Topping" would mean that two days ago produced a wider than average real body that closed at or near it's high price. A topping tail would be great, but not necessary, and higher than average volume for the day would also be great but not necessary. The bottom tail doesn't matter.
The key reversal that I'm looking for is for yesterdays candle to also be wider than average, but one that opened high and closed low, so that the two day price action had the bears today overpowering the bulls from yesterday plus the run up over the last range of six, ten, or any other number of days. This would seem to indicate a high percentage play for a short or a put.
The oposite action would be a good setup to go long or buy a call.
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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I've included 6, 10 and 15 Bar Trend versions of both directions so you can see the pattern and write your own versions for different lengths.
How to create a Personal Criteria Forumula (PCF)
Using Linear Regression vs Classical Peaks/Valleys for Divergence Analysis
PCF Formula Descriptions
Handy PCF example formulas to help you learn the syntax of PCFs!
Uptrend from C8 through C2:
3 * (C2 - C8) + 2 * (C3 - C7) + C4 > C6 AND MAXC6.3 < C2 AND C2 > C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8)) / 6 < (C2 - O2 + O1 - C1 - ABS(C2 - O2 - O1 + C1)) / 2 AND MINV2.1 > AVGV6.3
Downtrend from C8 through C2:
3 * (C2 - C8) + 2 * (C3 - C7) + C4 < C6 AND MINC6.3 > C2 AND C2 < C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8)) / 6 < (O2 - C2 + C1 - O1 - ABS(O2 - C2 - C1 + O1)) / 2 AND MINV2.1 > AVGV6.3
Uptrend from C12 through C2:
5 * (C2 - C12) + 4 * (C3 - C11) + 3 * (C4 - C10) + 2 * (C5 - C9) + C6 > C8 AND MAXC10.3 < C2 AND C2 > C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8) + ABS(O9 - C9) + ABS(O10 - C10) + ABS(O11 - C11) + ABS(O12 - C12)) / 10 < (C2 - O2 + O1 - C1 - ABS(C2 - O2 - O1 + C1)) / 2 AND AVGV10.3 < MINV2.1
Downtrend from C12 through C2:
5 * (C2 - C12) + 4 * (C3 - C11) + 3 * (C4 - C10) + 2 * (C5 - C9) + C6 < C8 AND MINC10.3 > C2 AND C2 < C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8) + ABS(O9 - C9) + ABS(O10 - C10) + ABS(O11 - C11) + ABS(O12 - C12)) / 10 < (O2 - C2 + C1 - O1 - ABS(O2 - C2 - C1 + O1)) / 2 AND AVGV10.3 < MINV2.1
Uptrend from C17 through C2:
15 * (C2 - C17) + 13 *(C3 - C16) + 11 * (C4 - C15) + 9 * (C5 - C14) + 7 * (C6 - C13) + 5 * (C7 - C12) + 3 * (C8 - C11) + C9 > C10 AND MAXC15.3 < C2 AND C2 > C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8) + ABS(O9 - C9) + ABS(O10 - C10) + ABS(O11 - C11) + ABS(O12 - C12) + ABS(O13 - C13) + ABS(O14 - C14) + ABS(O15 - C15) + ABS(O16 - C16) + ABS(O17 - C17)) / 15 < (C2 - O2 + O1 - C1 - ABS(C2 - O2 - O1 + C1)) / 2 AND AVGV15.3 < MINV2.1
Downtrend from C17 through C2:
15 * (C2 - C17) + 13 *(C3 - C16) + 11 * (C4 - C15) + 9 * (C5 - C14) + 7 * (C6 - C13) + 5 * (C7 - C12) + 3 * (C8 - C11) + C9 < C10 AND MINC15.3 > C2 AND C2 < C1 AND (ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8) + ABS(O9 - C9) + ABS(O10 - C10) + ABS(O11 - C11) + ABS(O12 - C12) + ABS(O13 - C13) + ABS(O14 - C14) + ABS(O15 - C15) + ABS(O16 - C16) + ABS(O17 - C17)) / 15 < (O2 - C2 + C1 - O1 - ABS(O2 - C2 - C1 + O1)) / 2 AND AVGV15.3 < MINV2.1
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 11/14/2004
Posts: 33
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Thanks, Bruce. That should locate the trending stocks. Now, what about the two day reversal on wide bars?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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It already includes the definition given for the reversal. Let's break the short version down. The first part checks for a positive LR Slope.
3 * (C2 - C8) + 2 * (C3 - C7) + C4 > C6
The second part checks for the Close of 2-Barrs Ago to be the highest during that Period.
MAXC6.3 < C2
The third part checks for the Close of the following day to be down,
C2 > C1
The fourth part checks for three things at once. It checks for 2-Bars Ago and yesterday to both have Bodies that are both above the Average of the rest of the Bars in the Period, it checks for the Bar of 2-Bars Ago to have a higher Close than Open and it checks for the Bar from yesterday to have a lower Close than Open.
(ABS(O3 - C3) + ABS(O4 - C4) + ABS(O5 - C5) + ABS(O6 - C6) + ABS(O7 - C7) + ABS(O8 - C8)) / 6 < (C2 - O2 + O1 - C1 - ABS(C2 - O2 - O1 + C1)) / 2
The fifth part checks for 2-Bars Ago and yesterday to both have Volumes that are above the Average of the rest of the Bars in the Period.
MINV2.1 > AVGV6.3
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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